S&P 500 notches eighth straight win as US markets close mixed
By Nicole Goodkind, CNN
New York (CNN) — US stocks ended the day mixed on Wednesday with investors focused predominantly on a flurry of corporate earnings reports in a week with a sparse schedule of economic data releases.
The S&P 500 wobbled through the day but managed to hold on to its longest winning streak in nearly two years. The index closed the day up 0.1%, marking its eighth day of consecutive gains. The last time that happened was November 2021.
The Nasdaq also had a late-day rebound, and ended 0.1% higher marking a nine-session winning streak.
The Dow was down by 40 points, or 0.1%, at the closing bell Wednesday, ending its respective seven-day winning run.
The market’s mixed messages come as a slew of Federal Reserve policymakers spoke this week. Fed officials issued mostly hawkish words of caution, warning that there is more work to be done to contain persistent inflation. Still, financial markets are still pricing in a 90.4% chance that the Fed keeps rates steady at its December meeting, according to the CME FedWatch Tool.
Treasury yields fell as investors digested the central bank’s messaging. Yields on the 10-Year Treasury fell to about 4.5% on Wednesday after surging in late October to touch 5%, its highest level in over a decade.
Fed Chair Jerome Powell is set to take part in an International Monetary Fund panel in Washington, DC, on Thursday.
Oil prices also slipped again after falling to their lowest levels since July on Tuesday.
Crude prices have been declining since Oct. 20, even as the ongoing conflicts in Europe and the Middle East threaten to further constrain the supply of oil.
That’s because of China’s weakening economy.
“Traders still don’t see the current Middle Eastern hostilities spreading out and affecting supply. Instead, it’s the demand side which is the focus, with concerns of economic weakness in China and elsewhere capping prices,” said David Morrison, senior market analyst at financial services provider Trade Nation.
Energy traders, meanwhile, are anxiously awaiting new inflation data from China, which is expected on Thursday.
Third-quarter earnings season is beginning to wind down, with 88% of S&P 500 companies having reported already. Of those companies, more than 88% beat analysts’ earnings estimates, according to FactSet data. Still, only 62% of those companies beat on revenue expectations, indicating that consumer and business demand might be slowing.
Shares of Rivian dropped nearly 2.4% even after the electric automaker posted an earnings beat earlier in the day and raised its production forecast for the year.
Shares of Warner Bros. Discovery, meanwhile, fell by nearly 19% as falling ad revenue dimmed the outlook for 2024. WBD is the parent company of CNN.
Robinhood also sank on Wednesday. Shares of the financial services company were down about 14.3% after the company reported a miss on third-quarter revenues and gave weak forward guidance, citing the falling value of crypto.
Video game developer Roblox saw its shares pop 11.8% after the company announced a strong earnings report with more in-game sales.
Investors are now waiting on earnings reports from Walt Disney and meme stock AMC, due later this afternoon.
The-CNN-Wire
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